Fast food companies and chains should embrace the most appropriate business models depending on the products marketed to the consumers (Min 16). Yashinoya is one of the leading fast food chain stores in Japan. The multinational corporation was founded in the year 1899. It markets beef bowl to its customers in Japan, China, Malaysia, Taiwan, the United States, Hong Kong, and Indonesia.
Café de Coral, on the other hand, is a fast food firm that markets a wide range of products such as chicken, pork, and beef. The firm operates several food chains such as Ah Yee Leng Tong, Manchu Work, the Spaghetti House, and Oliver’s Super Sandwiches. This discussion outlines the major risks faced by food chains. The paper goes further to propose evidence-based strategies that can be used by the firms to improve their supply chain processes.
Risks Faced by Fast Food Chains
The existence of risks is a common denominator in every sector including the fast food industry. Fast food companies tend to face numerous risks in their respective supply chains. The first risk arises from the unavailability of the required food materials. This risk might be associated with the changing bargaining power of different suppliers in the industry. Failure to acquire the right raw materials in a timely manner will make it hard for the firms to deliver the intended products to their customers.
The firms also operate in different countries (Hyland 3). Such firms might experience delays throughout the supply chain due to unpredictable disruptions. Incidents experienced in a different nation can affect the supply chain’s performance. For example, the mad cow incident of 2001 affected Yashinoya’s performance completely across the world. The firm was forced to terminate its beef sales in different nations including Japan.
Natural disasters and unforeseeable events will always occur. Japan and China have been characterized by such disasters for centuries. Such catastrophes disorient the firms’ supply chains and operations. This risk has continued to affect the performance of these two companies. Fast foods have always been associated with unhealthy products. Such concerns discourage more people from purchasing their products (Hyland 7). A company like McDonald’s has been focusing on the best measures to deal with such issues. This is also the same case for both Café de Coral and Yashinoya. Food poisoning is another risk affecting these fast food chains. Cases of poisoning eventually result in lawsuits (Hyland 9). Risks such as fire outbreaks, theft, and health issues such as obesity can affect the companies’ business models.
Suggestions for Supply Chain Strategies
Supply chain is one of the core functions of every fast food chain. This is the case because many companies in the global fast food sector operate in more than two countries. Both Café de Coral and Yashinoya can benefit significantly from improved supply chain strategies. To begin with, these two firms can embrace similar ideas in order to be prepared against future risks and disruptions. The Triple-A Supply chain is one of the best suggestions for the two firms (Christopher 89).
This approach will make it easier for the fast food companies to come up with cost effective supply chains (Min 38). Such chains are usually fast, adaptable, and agile. The approach will ensure the business interests of the firms are matched with the supply chains.
The concept of adaptability should be embraced by the companies in order to improve their supply chains. The approach encourages firms to redesign their supply chains in such a way that they can evolve depending on the changing economic times, technological developments, and political shifts (Christopher 22). By so doing, any political unrest experienced in a particular region will not affect the company’s business model. This goal can be achieved by identifying new sources of raw materials.
The firms can engage in continuous collaborations with their respective suppliers. Empowerment of these suppliers will make it easier for them to produce quality raw materials that can support the firms’ missions. The collaborative approach can “maximize information exchange and promote innovation” (Hyland 87). The stakeholders will be aware of emerging technologies, new production processes, and competitive advantages. The approach will result in effective supplier relationship management.
Spend analysis is a powerful strategy that can be embraced to improve the supply chain processes of these two firms (Min 46). This kind of analysis will guide the firms to establish the costs, quality, and effectiveness of the received raw materials. The approach can ensure the supply chain is improved by reducing costs and meeting the diverse needs of the customers. The six sigma model can also be used in order to identify the major sources of wastes in the supply chain (Christopher 72). Research and development (R&D) will also be embraced in order to improve the supply chain.
Specific recommendations are appropriate for one firm and not the other. For instance, Café de Coral should go a step further to establish different supply chains depending on the nature of its products. The strategy will ensure each product is marketed efficiently and responsively to the customers. Chances of recording disruptions will be reduced significantly (Min 102). This is the case because the firm markets various products to the consumers. Finally, the corporations should forecast future consumer expectations and redesign their chains accordingly.
Works Cited
Christopher, Martin. Logistics and Supply Chain Management. FT Press, 2016.
Hyland, Kimberly. “Risk in Food Industry.” Neumann Business Review, vol. 1, no. 1, 2014, pp. 1-12.
Min, Hokey. The Essentials of Supply Chain Management. FT Press, 2015.